FTX Faces Lawsuit From Creditors Challenging $16,000 Bitcoin Repayment Plan
Creditors of bankrupt FTX filed a lawsuit against proposed payout plans, arguing that deposits are their property. The plan suggests repaying creditors based on November 2022 digital asset prices, significantly lower than current values. Creditors demand a fair valuation of digital assets and centralized approach for unliquidated claims. FTX defends its valuation methodology, stating it complies with the Bankruptcy Code. The court will evaluate claims based on digital assets before finalizing the disclosure statement and commencing the plan’s solicitation and voting. Certain objections regarding specific digital asset valuation will be considered in a future evidentiary hearing in March 2024. FTX maintains that digital asset repayment prices must be determined based on the filing date for bankruptcy in November 2022. The court’s decision on the valuation of digital assets and the lawsuit’s resolution will have significant implications for FTX’s creditors and the broader crypto community.
